Google buys 5.94% stake in Lenovo [Bizcommunity (South Africa)]

The US Internet firm bought 618.3m shares in the Lenovo at US$1.213 each after Lenovo bought Motorola for US$2.91bn last week, according to Dow Jones Newswires.

The deal provides Lenovo with footholds in smartphone and tablet markets where it is eager to gain traction.

It also came just a week after the Chinese firm said it will buy IBM's low-end server business for US$2.3bn, giving it a platform to compete in that sector with US giants Dell and Hewlett-Packard.

However, Lenovo's Hong Kong-listed shares lost almost a quarter of their value after the Motorola news, with traders worried the technology company had bitten off more than it could chew by buying the unprofitable handset producer.

Source: AFP via I-Net Bridge
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